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Suppose the Government Increases Spending to Fund Tuition Assistance for Qualified

Question 379

Multiple Choice

Suppose the government increases spending to fund tuition assistance for qualified college students. Automatic stabilizers will _____ the _____ effect of the _____ in aggregate demand.


A) increase; contractionary; decrease
B) decrease; contractionary; increase
C) increase; expansionary; increase
D) decrease; expansionary; increase

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